Florida Housing Market: What Next?
The Florida housing market has been hot since the late 1990’s until 2008. Housing was in demand and housing prices were increasing double digits year after year. It was like how the stock market is today. A large percentage of homeowners had second and investment homes and there were many Floridians who turned part time real estate investor where they purchased and sold homes. Most of them made great money. There were building homes on almost every block in all parts of Florida. Then comes 2008 and the Florida housing market crashes and when it crashes, it crashes hard!!!. Thousands faced foreclosures and thousands lost most of the equity on their homes. Large percentage of homeowners were sitting on homes with mortgage balances that were higher than the value of their homes. Then, the housing sales starts picking up and when it does, it surges like today’s Dow Jones Average. No correction and no sight of a correction. Homes are selling above list prices and there are multiple offers on the same property. Many homes are selling the same day. My mortgage loan borrowers were asking me for multiple pre-approvals due to the fact that the offer they placed, they lost to a higher bidder. Never seen anything like this before in my 20 plus years as a real estate investor. Then when mortgage rates spike more than 1.0% in mid 2013, the Florida housing market has somewhat tapered off and seems like it has stabilized. Has it?
Florida Housing Market 2013: General Overview
There were areas in Florida such as Orange County where housing prices were appreciating at a rate of almost 2% a month in early 2013. This appreciation rate has continued until mid 2013 when mortgage rates jumped 1.0% in a period of a few weeks. Housing prices has slowed since then and competition is less rampant like it was before. The Orlando area was one of the first area where the Florida housing market has recovered. Many international home buyers and investors first started buying in Orlando than other parts of Florida.
Southwest Florida is expecting growth in their population from 2% to 4% which means demand for housing and appreciation of housing values due to demand.
Florida’s Pandhandle has been behind in housing value increases but it is expected to steadily continue to appreciate due to lower real estate values than the rest of the state. One the major reasons for the slowness of housing appreciation is due to their lack of economic growth and jobs. Florida’s Pandhandle biggest economic industry is the tourism industry.
Outlook Of Florida Housing Market: Prediction
Nobody has a crystal ball and nobody can predict the Florida housing market but the way it seems, it looks that the Florida Housing Market has stabilized and a housing bubble burst does not seem likely in the near future. Things look scary in early 2013 when the Florida housing market was on fire and seems like it was a wildfire that was totally out of control. Thankfully, it has stabilized and home builders seem like they are building new homes but not like the pre-2008 hay days.